Title: [ARFC] Update stETH and WETH Risk Params on Aave v3 Ethereum, Optimism and Arbitrum Author: ACI (Aave Chan Initiative) Created: 2024-01-12
Summary
This ARFC proposes to update sETH and WETH risk parameters on the Aave V3 Ethereum Mainnet, OP Mainnet and Arbitrum.
Motivation
We propose updating the stETH and WETH risk parameters to be optimal and competitive in the current market landscape. This will maintain Aave’s position as the prime liquidity protocol by increasing our protocol attractiveness for users looking to maximize their capital efficiency.
Specification
stETH E-Mode Ethereum
Update ETH-correlated E-Mode parameters with the following values.
| Risk Parameter | Current Value | Proposed Value |
|---|---|---|
| Loan To Value (LTV) | 90% | 93% |
| Liquidation Threshold | 93% | 95% |
We propose no changes to the stETH non-E-Mode parameters.
wstETH E-Mode Arbitrum
Update ETH-correlated E-Mode parameters with the following values.
| Risk Parameter | Current Value | Proposed Value |
|---|---|---|
| Loan To Value (LTV) | 90% | 93% |
| Liquidation Threshold | 93% | 95% |
| Liquidation Bonus | 2% | 1% |
We propose no changes to the stETH non-E-Mode parameters.
wstETH E-Mode Optimism
| Risk Parameter | Current Value | Proposed Value |
|---|---|---|
| Loan To Value (LTV) | 90% | 93% |
| Liquidation Threshold | 93% | 95% |
We propose no changes to the stETH non-E-Mode parameters.
WETH Ethereum
| Risk Parameter | Current Value | Proposed Value |
|---|---|---|
| Reserve Factor | 15% | 10% |
| Optimal Ratio | 80% | 90% |
Other parameters will remain unchanged.
WETH Arbitrum
| Risk Parameter | Current Value | Proposed Value |
|---|---|---|
| Reserve Factor | 15% | 10% |
| Optimal Ratio | 80% | 90% |
Other parameters will remain unchanged.
WETH Optimism
| Risk Parameter | Current Value | Proposed Value |
|---|---|---|
| Reserve Factor | 15% | 10% |
| Optimal Ratio | 80% | 90% |
Other parameters will remain unchanged.
Next Steps
- Gather community feedback on this ARFC.
- If consensus is reached, escalate this proposal to ARFC snapshot stage.
- If ARFC snapshot outcome is YAE, escalate to AIP stage.
Disclaimer
The ACI is not presenting this ARFC on behalf of any third party and is not compensated for creating this ARFC.
Copyright
Copyright and related rights waived via CC0.
Off-Chain Vote
YAE
651.91K AAVE100%
NAY
34.59 AAVE0%
Abstain
6.26 AAVE0%
Timeline
Jan 17, 2024Proposal created
Jan 18, 2024Proposal vote started
Jan 21, 2024Proposal vote ended
Feb 03, 2026Proposal updated